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Indian River County, Florida
<br />Notes To Financial Statements
<br />Year Ended September 30, 2013
<br />NOTE 22 - RISK MANAGEMENT - Continued
<br />General Liability, Property, Worker's Compensation and Medical - Continued
<br />Changes in the fund's claim liability amount during the current and prior three fiscal years are as
<br />follows:
<br />2009-2010
<br />2010-2011
<br />2011-2012
<br />2012-2013
<br />Balance at
<br />Fiscal Year
<br />Beginning
<br />$ 7,875,000
<br />7,899,000
<br />7,877,000
<br />8,074,000
<br />Claims
<br />and Changes
<br />in Estimates
<br />$ 13,940,099
<br />12,901,425
<br />13,967,831
<br />14,396,726
<br />Claim
<br />Payments
<br />$ (13,916,099)
<br />(12,923,425)
<br />(13,770,831)
<br />(14,396,726)
<br />Balance
<br />at Fiscal
<br />Year End
<br />$ 7,899,000
<br />7,877,000
<br />8,074,000
<br />8,074,000
<br />Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
<br />determined and at September 30, 2013, unrestricted net position of $25,513,263 has been designated for
<br />this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted
<br />liability excluding non -incremental claims adjustment expenses. At September 30, 2013, the
<br />undiscounted liability was the greater of the two amounts. The discount rate used in the calculation was
<br />2.5 percent.
<br />NOTE 23 - COMMITMENTS AND CONTINGENCIES
<br />A. Litigation
<br />Various suits and claims are currently pending against the County. It is impossible for the County to
<br />accurately quantify the exposure involved given the jury's latitude in assessing compensatory and
<br />punitive damages, and the court's latitude in awarding attorney's fees. The County intends to
<br />vigorously defend against these lawsuits and believes it has a good chance of prevailing on their merits.
<br />The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary
<br />course of its operations. In the opinion of management and based on the advice of legal counsel, the
<br />ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the
<br />County.
<br />B. Contracts and Other Commitments
<br />The County has various contracts and commitments outstanding at September 30, 2013. In the General
<br />Fund, contracts are for janitorial services, beach park landscape and custodial maintenance, legislative
<br />consulting services and external auditing services. In the Special Revenue Funds, contracts are for the
<br />construction of Fire Station 13 in the southern part of the County on 4th Street and 43rd Avenue, Oslo
<br />Road Widening from 58th Avenue to 43rd Avenue (Phase III), 66th Avenue Roadway Improvements
<br />from 16th Street to 4th Street, County Road 512 Road Resurfacing (Eastbound) from Roseland Road to
<br />Easy Street, as well as a variety of other and paving and drainage projects.
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